Stay Free - Russel Brand - February 23, 2024


Tony Robbins - How To Beat The Elites At Trading


Episode Stats

Length

26 minutes

Words per Minute

204.93103

Word Count

5,458

Sentence Count

351

Hate Speech Sentences

1


Summary

In this episode, Russell Brand sits down with Tony Robbins to discuss his new book, "The Holy Grail of Investing" and how he democratizes the process of investing and makes investing information that was previously clandestine accessible to ordinary investors so that we might take advantage of the principles that some of the wealthiest people in the world have been able to exploit up until now. Russell and Tony discuss the importance of having a plan for the future and how to prepare for a bear market in the future. Russell also shares his thoughts on the current state of the financial industry and why it s important to have a clear plan for your future and a clear vision for how you should invest your money in order to be financially secure and free of debt in the long-term. Stay Free with Russell Brand! Remember, there s an episode every single day, 7 days, to educate and elevate our consciousness together. Stay Free, and enjoy the episode. And if there s any justice, legacy media will soon be a New York Times bestseller, but we are questioning the values of legacy media and not telling you the truth. If there's any justice in this world of media, Legacy Media will soon become a bestseller. We will be delivering a detailed breakdown of current topics that the mainstream media should be covering, but if they are covering, they are amplifying establishment messages, they re amplifying the false messages they should be amplifying, but not telling the truth . but we re questioning the lies they are peddling. - The Awakening Waking Wonders - But we re talking about. by Russell Brand - If there s Any Justice in the World of legacy Media will be a podcast about the world of the establishment? , by R.R. , R.K Jr. Jr., Sam Harris, V. Vandana Shiva, Gabor Mate, and many more? by V. V. Mate and more. . by Jordan Peterson, R. R. Peterson, Jr., R.V. & Sam Harris & more! by V. & much more. We bring you in depth conversations with guests like Jordan Peterson & V. Shiva & more ? by Sam Harris & many more. You can expect weekly episodes delivered a podcast every day, seven days 7 days a week, we bring you more content delivered by the Awakening Wonders by The Awakening Wonders Podcast.


Transcript

00:00:00.000 Hello there you Awakening Wonders on Spotify, Apple Podcasts, or wherever you download your podcasts.
00:00:05.000 We really appreciate you, our listeners, and want to bring you more content.
00:00:08.000 We will be delivering a podcast every day, seven days a week, every single day.
00:00:13.000 You'll get a detailed breakdown of current topics that the mainstream media should be covering, but if they are covering, they're amplifying establishment messages and not telling you the truth.
00:00:23.000 Once a week we bring you in-depth conversations with guests like Jordan Peterson, RFK Jr, Sam Harris, Vandana Shiva, Gabor Mate and many more.
00:00:31.000 Now enjoy this episode of Stay Free with Russell Brand.
00:00:34.000 Remember, there's an episode every single day to educate and elevate our consciousness together.
00:00:40.000 Stay free and enjoy the episode.
00:01:01.000 And if there's any justice in the world of legacy media will soon be a New York Times bestseller.
00:01:06.000 But we are questioning the values of legacy media.
00:01:10.000 Tony, thanks for joining us today.
00:01:12.000 So good to see you, brother.
00:01:14.000 Nice to see you.
00:01:15.000 Tony, is this book about democratising the process of investing and making investing information that was previously clandestine accessible to ordinary investors so that we might take advantage of some of the principles that some of the wealthiest people in the world have been able to, up till now, exploit?
00:01:34.000 That's absolutely right.
00:01:36.000 I've been very frustrated.
00:01:37.000 I wrote a book right after the financial crisis.
00:01:39.000 I hadn't written a book in 20 years, but I was so angry and I know the people in the financial industry and saw the level of abuse.
00:01:46.000 And my question was, you know, is the game still winnable?
00:01:49.000 And so I decided to interview 50 at that time of the greatest investors in history that are alive today.
00:01:54.000 All people that started with nothing and became the best in the world at what they did.
00:01:57.000 They're all very different.
00:01:58.000 And I did this 674 page book.
00:02:00.000 I wanted something that my, anybody could pick up and start to develop that financial security and freedom
00:02:05.000 and more advanced people could do.
00:02:07.000 I wanted to hit both and we did.
00:02:08.000 I was really pleased with it.
00:02:09.000 Then I wrote a second book a few years later because I know when a crash comes,
00:02:14.000 people forget everything else you taught them.
00:02:16.000 And I knew the one would be coming, not because I'm so, you know, I have such great vision.
00:02:20.000 It's just every five years, roughly we have a bear market.
00:02:23.000 So I wrote "Unshakeable" and I thought I was done, but now it's a trilogy because so many people are behind.
00:02:30.000 We're in tough economic times, obviously, and people don't have a clear plan for their future.
00:02:35.000 And how are you gonna get there?
00:02:37.000 Well, the only way to get there is save more money and invest it or get bigger returns.
00:02:41.000 Well, bigger returns usually takes bigger risks.
00:02:44.000 Bigger risks can lead to you not having anything, or a lot less than you need.
00:02:48.000 And so I was working with Ray Dalio, one of the greatest investors in history.
00:02:51.000 He's become a good friend over the last decade.
00:02:53.000 And I asked him one day, out of all the things you've taught me, he's got so many principles, This is a man who manages $170 billion in assets for countries, for pension funds.
00:03:03.000 I said, what's the single most important investment principle you could give me?
00:03:06.000 And he said, Tony, I struggled with that for the last decade.
00:03:09.000 And he said, I've made it into a mathematical principle that's so simple, I call it the Holy Grail of investing, which is the title of the book.
00:03:15.000 It comes from Ray.
00:03:16.000 Listen, what is it?
00:03:17.000 He goes, everyone knows if you want bigger returns, you got to take bigger risks.
00:03:21.000 And the only thing that can help you is diversification.
00:03:24.000 Everybody knows diversification.
00:03:25.000 He said, but what they fail to teach you that I figured out is if you can find 8 to 12 investments that are non-correlated, Now, for your audience, I'm sure many of them know, but in case they don't, when things are correlated, it means they tend to move in the same direction.
00:03:39.000 If they move up, they both move up.
00:03:40.000 If they move down, they both come down.
00:03:42.000 If they're not correlated, they go in opposite directions.
00:03:45.000 So, stocks and bonds typically would go in opposite directions.
00:03:48.000 People have their bonds, so if stocks go down, their bonds kind of save them.
00:03:52.000 The only problem is in 2022 and 2008, both of them went down.
00:03:56.000 And so, without going through a technical analysis, he figured out this formula.
00:04:00.000 Well, it sounds good.
00:04:02.000 But it's hard to find these uncorrelated investments when you're just looking at stocks and bonds around the world.
00:04:07.000 And there's a lot fewer stocks today and a lot more correlated around the world.
00:04:11.000 And so I started looking around and trying to find the answers, and I was at a JPMorgan conference where they do it once a year.
00:04:17.000 It's an alternative investment conference.
00:04:18.000 You have to be a billionaire to attend.
00:04:20.000 I was a speaker, so I got to go.
00:04:22.000 And Ray was right before me, and he spoke, and all these billionaires had not taken notes the whole time.
00:04:26.000 Somebody asked him a similar question.
00:04:28.000 He said this formula, and every head in the room went and wrote it down.
00:04:32.000 So I was like, okay, how do I crack this code?
00:04:35.000 Well, the only way you can do it is by getting involved with alternative investments.
00:04:39.000 And this is the problem.
00:04:41.000 The greatest returns in the world have been kept away from the average public.
00:04:45.000 In America and around the world, especially if you do business in America, people can invest in companies here.
00:04:51.000 You have a limitation.
00:04:53.000 You have to be a certain type of investor.
00:04:54.000 You have to have a million dollar net worth as a minimum, not counting your house.
00:04:58.000 And you have to make or make $200,000 or $300,000 a year.
00:05:02.000 Well, a lot of people inherited their money.
00:05:03.000 They're not sophisticated or they built a business.
00:05:06.000 They don't know about investing.
00:05:07.000 And so Congress now finally agreed with me because this is so unfair.
00:05:11.000 And the House passed a law that says you can now take a test.
00:05:15.000 You study, take a test, and then you can tap into these.
00:05:17.000 Now, what does that mean?
00:05:19.000 Let me just give it to you real quick.
00:05:20.000 I interviewed 13 of the most successful investors in the world in this category of alternative investments, private equity, private credit, private real estate.
00:05:30.000 And these are people that manage 20 to 100 billion dollar funds and this is what's crazy.
00:05:36.000 They're trying to get to your goals.
00:05:37.000 These guys are getting 20 to 30 percent compounded returns every year for decades.
00:05:43.000 Now most the average person think that's impossible and the reason is for decades that money has gone to big pension funds To the big banking institutions and to the ultra wealthy.
00:05:53.000 And so now that it could be a way for people to legally start to invest, even if they're not in that category, the second problem you've got is getting in.
00:06:01.000 And since I have a good name and brand and know a lot of people, I've been able to get little pieces of some of these funds.
00:06:07.000 But what happened was I was lamenting one day to a dear friend of mine who's worked
00:06:12.000 with Paul Tudor Jones, a really brilliant financial guy.
00:06:15.000 And I was saying, you know, I get these little pieces.
00:06:16.000 It's like, you know, trying to get into the right club.
00:06:19.000 And you know, if you don't know the right people even if you got the money, you're on the other side
00:06:22.000 of the velvet rope, you're not getting in.
00:06:24.000 And I said, I've got little pieces, but this is frustrating.
00:06:27.000 And he said, Tony, I'm gonna tell you what I do with most of my money.
00:06:30.000 And this is a really brilliant guy.
00:06:32.000 So I'm leaning in and he said, I said, well, what do you do?
00:06:35.000 He goes, there's this firm in Houston, Texas.
00:06:37.000 I said, not London, not New York, not Singapore, Houston?
00:06:41.000 He goes, yes, they're outside the bubble.
00:06:43.000 Instead of trying to fight to get a little piece of one of these funds, he said, they've spent billions of dollars and they bought into the funds and you can buy a piece of the actual corporations.
00:06:54.000 Now, I'll shut up after this because I've done a long rant on this, but here's what I want you to understand.
00:06:58.000 If you look at the Forbes 400, the richest people in the world, And I asked you, Russell, what industry do you think is the most billionaires?
00:07:05.000 What would you say?
00:07:05.000 Probably tech.
00:07:08.000 That's what I thought, too.
00:07:09.000 It's not tech.
00:07:09.000 What would you be a second guess?
00:07:11.000 Energy.
00:07:11.000 Energy would be a great guess.
00:07:14.000 It's not.
00:07:17.000 But it's actually financial services, and it's not hedge funds, because they go up and down.
00:07:23.000 It's private equity.
00:07:24.000 And the reason, Russell, is they tie your money up for five years, some of them ten years, and people agree to it, and they get 2% on your money, whether they make you money or not, and 20% of your upside.
00:07:34.000 And the only reason people do that, of course, is because they're getting returns that are ridiculous.
00:07:38.000 Like, here's an example.
00:07:40.000 If most people in their 401k in the U.S.
00:07:43.000 or in other countries, they'll invest, let's say, in the S&P 500, the famous index.
00:07:48.000 It's the top 500 companies in the New York Stock Exchange.
00:07:50.000 For the last 35 years, that's brought a return of 9.2%.
00:07:54.000 Well, why does that matter?
00:07:55.000 It means you double your money every eight years, doing nothing.
00:07:58.000 It's pretty cool.
00:08:00.000 But if you put your money not with these people, not the people that I interviewed for this book, who are the 20 and 30 percenters.
00:08:05.000 Average private equity has been 14.2%.
00:08:07.000 I'm throwing a lot of numbers, but that means you're making 50% more per year compounded.
00:08:14.000 So if you put $100,000 out of like your 401k or whatever years ago in the S&P 500 and forgot about it, it's worth $2.6 million today.
00:08:23.000 It's pretty amazing.
00:08:24.000 But if you took the same $100,000 and put it in private equity, it's worth $13.9 million.
00:08:30.000 So that's what's now available for people.
00:08:32.000 And instead of paying these big fees of 2 and 20, You can actually be a partner in all of the things they own, and get the 2 and 20 yourself.
00:08:40.000 That's why I'm so passionate about this.
00:08:42.000 And then also, we're giving all the rights to this book, all the profits to this book, is Feeding America.
00:08:47.000 I think you know we've provided, I've provided over a billion meals over the last eight years through them, through both all my books I've done this with, and also obviously additional contributions.
00:08:55.000 So, when people are learning to change their own life, they can help other people that are in deep need as well.
00:08:59.000 It's important that the ultimate goals of this passionate endeavor are plainly philanthropic and not in the way that we've come to understand the word philanthropy in recent years as a mask for Bill Gates's globalist agenda, but truly putting food in the mouths of hungry people.
00:09:18.000 That's extraordinary.
00:09:19.000 I've got so many questions, Tony, and like I work often for myself and I know for many people in my audience it will sound like you're speaking in another language and I know that you, like me, don't come from a class of people that necessarily understand that language indigenously.
00:09:33.000 Just before our conversation commenced I was watching Rishi Sunak, the current British Prime Minister, former Chancellor of the Exchequer and member, hedge fund member, talk about how he was doing such a great job and showing us with like a drawing on a whiteboard why people aren't poor and suffering and why inflation is coming down.
00:09:51.000 Although, you know, which seems to be at odds with many people's visceral experiences, many of the costs of living appear to be increasing.
00:09:59.000 And it seems important to me that he was part of a hedge fund invested in Moderna just before the pandemic crisis.
00:10:05.000 I'm not suggesting anything malfeasant, of course, simply the kind of luck that seems to prevail in those circles.
00:10:12.000 Indeed, The type of luck that Nancy Pelosi and her husband Paul Pelosi have become global masterminds in.
00:10:20.000 It's already sort of commonly understood that if you were to just invest in what Nancy Pelosi invests in, you'd be beating some of the world's best hedge funds.
00:10:29.000 But you're saying that now, through democratising these techniques, we don't have to simply make Nancy Pelosi our spirit guide.
00:10:37.000 We can ourselves invest in a way that will provide us with a great return.
00:10:43.000 One of my questions, Tony, is if you are democratising these principles and making them accessible to a wide number of people, won't that in itself influence financial outcomes and diversify the number of people and somehow dilute the impact?
00:11:01.000 Or is that a rookie error I'm making?
00:11:04.000 No, it's not a rookie error.
00:11:04.000 It's a good question.
00:11:05.000 No, it's really, first of all, Trudeau did the same thing, by the way.
00:11:08.000 He made those investments right before he enforced those actions.
00:11:13.000 It's just unbelievable when you look around the world how lucky people are.
00:11:16.000 They're very lucky.
00:11:18.000 Very lucky.
00:11:19.000 But no, the reason is, you know, it's interesting.
00:11:22.000 Part of what the challenge is and why things get overvalued is because for years we've had these artificially low interest rates.
00:11:28.000 And so the only place to put your money was in the stock market, which is risky.
00:11:32.000 But so more and more money chasing the same small number of stocks.
00:11:36.000 So that's what inflation is.
00:11:38.000 And so we used to have 8,000 stocks, for example, here in New York.
00:11:41.000 Now you got 3,700.
00:11:43.000 And the same number of people going after them and saying, "Well, there's no other place to go."
00:11:46.000 Well, now bonds are giving a decent return.
00:11:48.000 So some more money is going there.
00:11:50.000 But to give you perspective, think 3,700 options versus in the US,
00:11:53.000 there's 250,000 companies that are over 100 million to 3 billion.
00:11:58.000 87% of all companies are not public.
00:12:01.000 So what private equity does is they know a category.
00:12:04.000 I'll give you an example.
00:12:05.000 There's a gentleman named Robert Smith of Vista.
00:12:08.000 He starts with nothing.
00:12:09.000 He's an incredible human being.
00:12:11.000 He's rated one of the top 50 business minds of this century.
00:12:15.000 Started with nothing, built this $100 billion fund, and I can't tell you the exact number because you have to have his prospectus, but let me just make it clear.
00:12:22.000 It's way more than 20% compounded here for 26 straight years.
00:12:26.000 So if, give you a sense, if 5% is going to give you 14 years to double, or 9% is going to take 8 years to double, when you get 20% it only takes you 3.5 years to double your money.
00:12:38.000 You can really grow something with a very small amount of money with compounding in that area.
00:12:43.000 Now this guy, he's taken one category, software as a service.
00:12:47.000 And so he knows everything about those kinds of companies.
00:12:50.000 He's been doing it for 26 years.
00:12:52.000 He can take a company, figure out how they should change the company.
00:12:55.000 Do they need new leadership?
00:12:57.000 What kind of technology will do it?
00:12:58.000 How can they cut the cost?
00:12:59.000 He builds the company up and then he sells it to a larger company or takes it public.
00:13:03.000 That's the format.
00:13:04.000 So there's so much more in private equity.
00:13:06.000 It's not going to be diluted.
00:13:08.000 And that's the beauty right now.
00:13:09.000 My hope is it'll get into people's 401ks, it'll be available where people can accelerate their returns, because that's what pension funds and the wealthiest people in the world have done.
00:13:18.000 When people look at where they put their money, the ultra-wealthy, on average, the latest report shows they have 46% of their money in private alternatives, in private equity, private credit, and only 29% in the public stock markets, and across the world.
00:13:32.000 For 35 years, every stock market in the world has been less than private equity in that same country, to give you perspective.
00:13:39.000 So this is what the rich have had access to, and now people can not only get into those funds, because it's one thing to legally get in, but to now be a partner side-by-side with them is one of the most exciting things that I've seen.
00:13:51.000 And it's not only just private equity, it's also private credit.
00:13:54.000 I was just reading an article today that just came out in the Wall Street Journal, it was talking about private credit as the new explosion.
00:14:00.000 I'm sure you know, banks since 2008 have gotten tighter and tighter.
00:14:04.000 And now, you know, some of the regional banks here in the United States, I'm sure you heard about Silicon Valley and so forth, that have had their problems.
00:14:10.000 Well, now, banks, excuse me, all these companies, these 250,000 companies I told you about, that are 100 million to 3 billion plus, They have a hard time getting financing.
00:14:21.000 And so what's happened now is the private equity guys have huge sums of money.
00:14:26.000 They know how to value companies properly and they loan money to these people and they do it really judiciously.
00:14:32.000 They have less than a 1% failure rate.
00:14:34.000 So let me give an example that maybe your audience can understand.
00:14:37.000 If you're Be invested in bonds.
00:14:40.000 A bond is just an agreement.
00:14:41.000 It's an IOU.
00:14:42.000 I'm giving you money, you're promising to give me my money back, plus 5%, 4%, 3%, whatever it is, right?
00:14:49.000 Well, bonds have such low returns that two years ago, people were buying junk bonds.
00:14:54.000 They call them high-yield bonds, super risky bonds, to simply get a 3.9% return.
00:14:59.000 Well, we were getting 9% in private credit at that time.
00:15:02.000 So private credit, these people have less than a 1% failure rate.
00:15:07.000 Any bank would die for that.
00:15:09.000 And they're producing returns right now of 11 and 12%.
00:15:12.000 You know, if you have a mortgage and it was locked at 3%, you're happy right now.
00:15:17.000 But, you know, with interest rates rising, if you didn't lock it down, you're paying two and a half or three times more money for the same house.
00:15:24.000 Well, that's called a floating rate.
00:15:26.000 Well, the floating rates on banks, excuse me, on private equity loans or private credit loans, they float.
00:15:32.000 So things that were 5% or 6% are now 10% and 12%, and there's no more risk than there was before.
00:15:38.000 And those are the types of returns people typically get from equity, from investing
00:15:42.000 in the stock market if it goes well.
00:15:44.000 So there's some really interesting opportunities happening.
00:15:46.000 There's opportunities to actually, believe it or not, to own sports teams, which no one
00:15:50.000 but multi-billionaires could do before.
00:15:52.000 So in a way, what you're saying that this book, the Holy Grail, your newest book, number
00:15:57.000 one on Amazon, affords the opportunity for small investors to invest in a way that was
00:16:03.000 was previously not only impossible, but actually illegal.
00:16:07.000 And it's more likely to give higher yields than other forms of investment.
00:16:13.000 So because when you're describing this to me, it does seem like an esoteric and inaccessible world that's almost designed To keep people outside of it.
00:16:22.000 And in fact, that's why I think since 2008 in particular, has been increasing the idea that there, you know, of course, that during the pandemic, there was a massive wealth transfer.
00:16:34.000 And it seems like the momentum of finance, global finance, and indeed power, is travelling in exactly the opposite direction to the one you appear to intend in this book, towards a concentration of wealth.
00:16:47.000 A concentration of power.
00:16:49.000 A concentration of authority.
00:16:51.000 But what you are saying is, is that opportunities exist for people that are investing much smaller sums of money.
00:16:57.000 We're talking about ordinary people, I guess, to get significant returns.
00:17:02.000 And this is something that even I would understand.
00:17:05.000 Is that right, Tony?
00:17:07.000 That's really true, and a way of explaining it is, when I wrote my first book, I basically interviewed 50 of the smartest financial people in the world, the Ray Dalios, the Carl Icahns, the Warren Buffets, all of them, all different, but they agreed on four things that I think anybody can get their hand around.
00:17:22.000 They said, what do they do?
00:17:24.000 Some of them are trying to buy things at the cheapest price, when everybody's afraid.
00:17:28.000 Some of them are trying to study and anticipate world markets.
00:17:32.000 They all have different strategies, but they agreed on four things.
00:17:35.000 First one's pretty simple.
00:17:37.000 They all focus on not losing money, where the average investor focuses on making money.
00:17:41.000 And you say, well, that's because they're rich.
00:17:43.000 No, it's because they know if they lose 50% on a stock, they have to make 100% to get even.
00:17:48.000 And it's very hard to get 100%.
00:17:49.000 It could take years.
00:17:51.000 So they're really judicious.
00:17:53.000 If you listen to Warren Buffett, he says, here's the rules to investing.
00:17:56.000 Rule one, don't lose money.
00:17:57.000 Rule two, see rule one.
00:17:59.000 Well, that sounds nice, but how the hell do you do it?
00:18:02.000 Well, the way they do it is the second key.
00:18:04.000 They have what's called asset allocation.
00:18:06.000 It's a big word.
00:18:08.000 It just means if you had a thousand dollars to invest or a million dollars, the most important decision you're going to make is not whether you put in an apple or whether you buy this piece of real estate.
00:18:17.000 It's going to be your philosophy of investing, meaning how much of that money, what percentage of that thousand dollars, a million dollars, would I put in an environment that is less risky And it's less risky, it's going to get less rewards, but it's going to, it's kind of like the turtle and the hare.
00:18:31.000 It's going to grow well over time and compound, but it's not going to blow my mind, but it's going to get me there without losses.
00:18:37.000 Where do I put the balance is in areas that are a little more risky.
00:18:40.000 It might be my real estate or it might be stocks or something else that has a lot of upside, but you could also lose all of it.
00:18:47.000 And so the balance of that is really related to how old are you?
00:18:51.000 When do you need the money?
00:18:51.000 If you need it 30 years in the future, you can put a lot more at risk because you have time to make up for it, because compounding will take care of you.
00:18:59.000 If you're 60 years old and you need it in four years, you're probably going to have to put more in the security bucket, so to speak.
00:19:04.000 So they have ways of managing it, so they don't ever put everything in one place.
00:19:08.000 They don't ever lose.
00:19:09.000 But the third thing they teach is the most interesting, and this is what they get in these types of investments I'm describing as alternative investments.
00:19:16.000 It's called asymmetrical risk-reward.
00:19:18.000 They've got all these words.
00:19:20.000 Lawyers have words that give them power, because you don't know the words, right?
00:19:24.000 Medical doctors have words.
00:19:25.000 Iatrogenic.
00:19:27.000 It's iatrogenic causes.
00:19:29.000 Iatrogenic causes are the fifth biggest cause of death in America, and that means physician-induced or hospital-induced, to give you an idea.
00:19:36.000 So we have certain words.
00:19:38.000 Put the words aside.
00:19:39.000 Asymmetrical risk-reward simply means this.
00:19:42.000 Most people think these billionaires got rich by taking giant risks, and that is not true.
00:19:48.000 A few may, but they don't usually stay a billionaire.
00:19:51.000 They do it because they look for worth the least amount of risk with the most amount of upside.
00:19:57.000 And so, for example, I work with Paul Tudor Jones, one of the greatest investors in history, and he, you know, in 1987 when the stock market had its biggest drop in history percentage-wise, 20%, he made 100% for his clients.
00:20:08.000 He's that smart.
00:20:10.000 And Paul Tudor, when he got into trouble and I had to come turn him around, and I discovered he originally would never make an investment unless he thought investing a dollar would make him five.
00:20:19.000 Now watch this.
00:20:20.000 If he's wrong, he can invest another dollar and make four.
00:20:22.000 He could be wrong four times out of five and he makes money.
00:20:25.000 That's called asymmetrical risk reward.
00:20:27.000 Or another example is I have a friend in Texas who during 2008, the worst economic time, He took $30 million and converted it into $2 billion in one year.
00:20:37.000 And this is in 2008, the worst economy.
00:20:39.000 How?
00:20:40.000 He saw real estate.
00:20:42.000 Everyone thought it couldn't go down.
00:20:43.000 He bet against it with some special techniques.
00:20:46.000 But what made him successful is he could have been wrong 13 times and still made money.
00:20:50.000 He wasn't wrong 13 times.
00:20:52.000 I asked him one time, how would I explain asymmetrical risk-reward to someone like a young child or my teenage friends?
00:21:00.000 And he said, Tony, I was struggling with that with my own kids.
00:21:03.000 I came up with an answer, and here's what it is.
00:21:05.000 He said, I look for an investment where I could literally not lose money and have upside immediately.
00:21:12.000 And my response, most investors would go, that's impossible.
00:21:14.000 He goes, no, nickels.
00:21:16.000 He said, if you buy a nickel, it's never worth less than a nickel.
00:21:20.000 And he said, and guess what?
00:21:22.000 It's worth 30% more valuable because, unfortunately, with the U.S.
00:21:26.000 government, the cost of nickel is 7.8 cents, almost 8 cents.
00:21:31.000 And he said, that's just the silver value of nickel value in there.
00:21:35.000 It's actually 9 cents to make.
00:21:37.000 These were copper in pennies.
00:21:39.000 They took it out, and all those pennies were worth twice as much.
00:21:42.000 He said, so the day I buy it, I can't lose money, and I'm 30% up.
00:21:45.000 I said, but you can't melt the money.
00:21:47.000 He goes, well, you can, but he goes, I don't need to.
00:21:50.000 They're going to change the nickels, and when they do, it'll be a doubling or tripling.
00:21:53.000 He goes, if I could push a button and convert all my money to nickels, I'd do it tomorrow.
00:21:57.000 And so his kids, and he called the Fed and he bought $20 million worth of nickels to show them how this is done.
00:22:04.000 The last one I'll give you real quick is from your part of the world, if you look over at Sir Richard Branson, you know, when he decided to compete, you know, with British Airlines, his biggest risk is going to buy all these planes.
00:22:15.000 So he negotiated for a year and a half, like, He'll risk his life, but he doesn't do it in investing.
00:22:20.000 If you know Richard, he's like, what's the downside?
00:22:23.000 How do I protect the downside?
00:22:24.000 So he negotiated with Boeing for a year and finally got them to agree that if he didn't make it in a year and a half, he could give back all the planes and there'd be no loss to his credit and no loss to his money.
00:22:33.000 So there's no downside.
00:22:35.000 And then the last key is they all diversify.
00:22:37.000 So all of these tools in this book show you how to do that and show you how to do it with small amounts of money if you want to.
00:22:43.000 But I just want to mention one more, the sports teams.
00:22:46.000 You know, today, sports, 100 out of the 90, 92 out of the last 100 TV shows that were the top TV shows in my country were sports.
00:22:55.000 Because everyone's cutting cords.
00:22:56.000 They're binging.
00:22:57.000 You can't binge on sports.
00:22:58.000 You got to watch it live.
00:23:00.000 So, you know, our football, which, you know, we call your soccer, what you guys call football, our version of football, we paid $110 million at Peacock to show one show, one program, And it was worth it.
00:23:13.000 They got 20 million new subscribers to watch this particular show between Kansas City Chiefs and the Dolphins.
00:23:19.000 You can own a piece, just like buying a piece of IBM, but these sports teams grow at 18% a year compounded.
00:23:26.000 It's ridiculous and it's not tied to the stock market.
00:23:28.000 So the stock market goes up and down, you don't care.
00:23:30.000 These sports teams continue to grow.
00:23:33.000 Michael Jordan bought his Hornets team for $275 million, just sold it for $3 billion 11 years later.
00:23:38.000 And that's typical these days.
00:23:40.000 So you can get a piece of that today, of the fun of sports, of the monopoly power they have, because no one can compete with them in that city, and be able to grow because they're really media operations now.
00:23:50.000 They're not just butts in seats.
00:23:51.000 All this is available to the average investor if they do a little homework and educate themselves.
00:23:55.000 How do you continue to engage with your purpose?
00:24:00.000 How is it that you retain this passion after all of these years of doing what you have done with all of this success?
00:24:07.000 How have you drilled yourself to pay such attention to detail?
00:24:11.000 And what values is it that you're appealing to in yourself as you continue to create this kind of content and offer these kind of opportunities?
00:24:19.000 What is it, Tony?
00:24:21.000 I don't think it's because I'm such a great person.
00:24:23.000 I'd like to believe that.
00:24:24.000 But I suffered so much in my childhood, both financially and emotionally, that I've got to find a way to solve this so my future family doesn't.
00:24:31.000 Now I provide 100 million meals a year to give you an idea.
00:24:34.000 I had a billion goal to do in 10 years.
00:24:37.000 We've done it in 8 years.
00:24:38.000 I'm now working on a 100 billion meal piece.
00:24:41.000 I'm looking for 99 other people to do what I did.
00:24:43.000 100 million meals a year for 10 years because of the Ukraine war.
00:24:47.000 You know, that's the breadbasket, as I'm sure you know.
00:24:50.000 And because the WF doesn't want us to use fertilizer, but 50% of the world's food comes from fertilizer, most from Russia, so the cost has gone through the roof.
00:24:58.000 So normally, 80 million people are at threat of starving.
00:25:01.000 This year, it's 380 million people.
00:25:03.000 So I've actually, in the last year, we've gotten to 60 billion.
00:25:06.000 But the answer to your question is, I love to see people, I hate suffering, and I love to see people light up.
00:25:12.000 And it's just, I'm addicted to that.
00:25:14.000 When I was a young man, I figured out how to lose weight.
00:25:16.000 Literally, I was 5'1 in high school, 1.5 meters, I'm now almost 2 meters, you know, 6'7, and I tell people the difference is personal growth, of course, right?
00:25:25.000 But that explosion in my life during that time period, I learned how to lose weight, and I helped my friends, and I got all this love from it, you know?
00:25:33.000 And I think I got addicted to having the answers around finance, around your body, around your emotions, around your relationships, around how to grow in your career, and so I've been obsessing on that for This is my 47th year.
00:25:45.000 I started when I was three, of course.
00:25:48.000 So, of course, I'm still driven by it.
00:25:49.000 It's so fulfilling, Russell.
00:25:50.000 Same reason you do.
00:25:51.000 I mean, I love your passion and your willingness to go out there and put yourself on the line.
00:25:55.000 Plus, your ability to just make people laugh about shit that would normally overwhelm people completely.
00:25:59.000 So, I'm grateful for your messages, brother.
00:26:01.000 Thank you very much, Tony.
00:26:02.000 Well, I'm taking a radical departure from my previous career trajectory.
00:26:07.000 It's investment now that interests me.
00:26:09.000 I'll be spending all of my time looking for unique financial opportunities.
00:26:13.000 If we can get ahead of even the Pelosi's with this simple Holy Grail technique, then I'm up If we can get ahead of the globalists like Trudeau and Rishi Sunak, then it's certainly the book for me.
00:26:26.000 Tony, thank you for making time for us today and for explaining so eloquently and yet simply these complex ideas.
00:26:33.000 I'm going to read your book.
00:26:34.000 I appreciate your time.
00:26:35.000 Thank you.
00:26:35.000 Thank you so much.
00:26:37.000 Blessings to you.
00:26:38.000 I love you, Tony.